Last checked at 8 Aug 2023 07:00
News Release
Tuesday 8th August 2023
Group Chief Executive Succession
Spirax-Sarco Engineering plc, the leading global thermal energy management and fluid technology solutions Group, announces that Nicholas Anderson, Group Chief Executive, has indicated to the Board his desire and intention to retire in early 2024, upon completion of ten years in this role.
Commenting on Nick's retirement, Board Chair, Jamie Pike said:
"The Board acknowledges with gratitude Nick's significant contribution to the Group's growth and prosperity. Nick has led the Group with distinction and meaningfully improved on the Group's long record of consistent and quality growth. Under Nick's leadership, Group sales and profits grew by a multiple of over 2.5, the number of our colleagues has doubled and the market capitalisation has nearly quadrupled, firmly establishing our Group as a constituent of the FTSE100 Index. More than half of this growth was organic, with the balance coming from successful acquisitions that strengthened and enhanced the Steam Specialties and Watson-Marlow Businesses, as well as established our Electric Thermal Solutions (ETS) Business. Nick also leaves our Group with firmly embedded Sustainability strategies, Inclusion and Equity programmes, as well as successful leadership and talent development programmes that contributed to the selection of a strong internal successor. We wish Nick every success in his future Non-Executive career."
The Board is delighted to announce that Nimesh Patel is appointed Group Chief Executive and will take up the position on 16th January 2024. Nimesh joined the Group in 2020 as Chief Financial Officer and his appointment to Group Chief Executive follows a rigorous succession process.
Board Chair, Jamie Pike, said:
"Nimesh's appointment as Group Chief Executive marks the completion of the Board's long-term planning for Nick's succession. During his three-year tenure as Chief Financial Officer and a member of the Board, Nimesh has played a significant role in shaping our strategy, working with colleagues to enhance our unique culture and business model to fulfil our Purpose. We have observed Nimesh's natural leadership style and proven ability to engage at all levels throughout the organisation and with external stakeholders. His strategic approach and deep understanding of our Businesses, together with his global and financial experience all underpin the Board's confidence in the future leadership of our Group. We believe Nimesh will provide both continuity as well as progression in our journey towards creating sustainable value for our all our stakeholders and we look forward to working closely with Nimesh, supporting him on this journey ahead.
Nimesh will continue as Chief Financial Officer until 16th January 2024. The Board has commenced a process to appoint a successor to this role, which will be announced at the appropriate time."
Group Chief Executive, Nicholas Anderson said:
"The twelve years I've spent with this Group have been the most enjoyable and fulling of my 41-year working career. I am extremely proud of what we have achieved over these years and wish to thank all my colleagues, past and present, for their support and contribution to these achievements. I am also delighted that the Board has chosen Nimesh to lead the Group on the next leg of this journey, which I'm sure will be even more successful."
Chief Financial Officer, Nimesh Patel said:
"I made the decision to join Spirax-Sarco Engineering three years ago because I knew there was something extremely special about the Group. This has been proven to me every day by the colleagues I meet and work with all over the world. It is a huge privilege to be trusted with the leadership of the Group and I believe passionately in the role we can play in supporting our customers' sustainability journeys, building on the strong position Nick has established."
Nick will step down as Group Chief Executive and from the Board on 16th January 2024 but remain as an employee of the Group until 31st March 2024, acting in an advisory capacity to support Nimesh as he transitions into the role of Group Chief Executive.
Spirax-Sarco Engineering will publish its Half Year Results on 10th August 2023.
Enquiries:
Nicholas Anderson, Group Chief Executive
Nimesh Patel, Chief Financial Officer
Mal Patel, Head of Investor Relations
Hazel Meldrum, Group Head of Corporate Communications
Tel: + 44 7881 359110
Remuneration disclosures
Nimesh Patel
Effective from 16th January 2024, Nimesh Patel will receive a base annual salary of £720,000 as Group Chief Executive (CEO). This salary is set below that of the experienced retiring Group Chief Executive and it is intended to increase base salary to a market level within two years of appointment, (e.g. £750,000 plus annual Executive Director salary increases) subject to personal and business performance. In the short-term, this is likely to result in salary increases above those provided to the rest of the workforce. In line with the Company's approach of ensuring open and transparent dialogue with shareholders, any salary increases approved by the Remuneration Committee will be clearly reported in the relevant Directors' Remuneration Report.
Nimesh's pension, benefits, Annual Bonus Scheme and Performance Share Plan will be in line with the opportunities for the current Group Chief Executive (150% and 200% of salary respectively and 10% pension allowance) and as detailed in our shareholder-approved Remuneration Policy overwhelmingly approved by shareholders at the 2023 Annual General Meeting.
There is no additional information to be disclosed pursuant to LR 9.6.13 R.
Nicholas Anderson
Nick Anderson's retirement arrangements will be in line with Spirax Sarco Engineering plc's Remuneration Policy, last approved by shareholders at the 2023 Annual General Meeting. In summary, Nick will qualify for good leaver status under the Annual Bonus Scheme and Performance Share Plan with any payments being pro-rated for time, only paid to the extent the relevant performance measures are achieved and paid at the normal time. There will be no payments for loss of office. In accordance with section 430(2B) of the Companies Act 2006, full details will be disclosed in our 2024 Annual Report and Accounts.
About Spirax‐Sarco Engineering plc
Spirax‐Sarco Engineering plc is a leading global thermal energy management and fluid technology solutions Group, whose purpose is to deliver sustainable value to all its stakeholders through engineering a more efficient, safer and sustainable world. It comprises three world‐leading Businesses: Steam Specialties, for the control and management of steam; Electric Thermal Solutions, for advanced electrical process heating and temperature management solutions; and Watson-Marlow, for peristaltic pumping and associated fluid path technologies. The Steam Specialties and Electric Thermal Solutions Businesses provide a broad range of fluid control and process heating products, engineered packages, site services and systems expertise for a diverse range of industrial and institutional customers. Both Businesses help their customers improve process efficiencies, meet environmental sustainability targets, improve product quality and enhance the safety of their operations. Watson‐Marlow provides solutions for a wide variety of demanding fluid path applications with highly accurate, controllable and virtually maintenance-free pumps and associated technologies.
The Group is headquartered in Cheltenham (UK), has 40 strategically located manufacturing plants around the world and employs more than 10,000 people, including more than 2,100 direct sales and service engineers. Through its One Planet: Engineering with Purpose Sustainability Strategy, the Group is committed to achieving net zero emissions for scopes 1 and 2 by 2030 and for scope 3 by 2050. In 2022, the Group launched its TargetZero solutions for the decarbonisation of critical industrial processes.
The Company's shares have been listed on the London Stock Exchange since 1959 (symbol: SPX) and it is a constituent of the FTSE 100 and the FTSE4Good Indexes.
About Nimesh Patel
Prior to joining Spirax-Sarco Engineering in 2020, Nimesh was Chief Financial Officer of the De Beers Group, which is majority owned by Anglo American plc. He has over 22 years of experience in senior finance roles, including his time with De Beers and as Group Head of Corporate Finance for Anglo American plc, which followed a 14-year career in investment banking.
Further information can be found at www.spiraxsarcoengineering.com
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